Consumers are a complicated and dynamic bunch, with food and beverage preferences shifting widely – and often. A webinar presented by CokeSolutions, “Foodservice Industry Insights: Optimizing Consumer Behaviors,” revealed the changes in consumer dining behaviors are largely driven by the four key trends.1,2
So, how do QSR and FSR foodservice operators compete in today’s evolving marketplace? The webinar reveals the importance of taking time to understand consumer behaviors, and then optimizing opportunities to enhance the guest experience for breakfast foods, snacking, Happy Hour, and late night occasions.
Capture All-Day Breakfast Demand
In the QSR category, leveraging the all-day breakfast (ADB) trend is an advantageous place to start. Data reveals that 70% of customers want all-day breakfast, and that four out of 10 consumers want a sparkling soft drink at lunch (59%) and dinner (45%).1, 2 Given the fact that 74% of all-day breakfast customers typically purchase a combo meal, and also spend an average of $.86 more the non-ADB consumer, foodservice operators can capture more customers and increase check size by actively marketing and promoting bundles.1,2
Another way QSRs can boost sales is by promoting snacking occasions. Since three out of 10 consumers say they have increased their snacking frequency, and because 45% of QSR consumers choose from the dessert or dollar menus to satisfy their snacking desire, by offering two-item snack and beverage bundles, QSR operators can better meet consumer needs – and capture sales.3,4
For FSR operators, offering healthy snacks is one way to boost snacking incidences, particularly since having this option is important to 44% of consumers, and because 45% of consumers actually replace at least one meal with a snack.3,6,7 FSRs can take advantage of this demand by offering food and beverage snack bundles and also by promoting customizable combos.
Promote the Happy Hour
About 27% of QSR beverage occasions take place between 3:00 p.m. and 4:59 pm.3,4 and understanding this can lead to increased beverage and beverage/snack incidences. To attract customers, QSR operators can offer Happy Hour deals and value combos, or beverage and snacking bundles. In addition, promoting unique product offerings during this key late afternoon time can help to increase purchasing occasions.
For FSR customers, the data reveals that 35% of customers go out for Happy Hour at least once a month, and 39% of customers select their destination based on a unique food and beverage menu for Happy Hour.4,6,7 As such, FSRs can drive traffic with special Happy Hour deals. Further, because 35% of Millennials and 32% of Gen Xers are more likely to have dinner at the restaurant where they are participating in Happy Hour, there is a strong opportunity to grow incremental checks.4,5,6
Happy Hour sales also offer FSRs the opportunity to drive sparkling incidences by offering them as a mixer for alcoholic beverages, and to capture more consumer sales by selling specialty beverages, such as mocktails.
Settle in for Late Night Occasions
In both the QSR and FSR categories, 53% of consumers ages 18 to 24, and 38 percent of consumers ages 24 to 34, said they would visit a restaurant more often if it stayed open later.3,4 To capitalize on the opportunity to increase traffic during off-peak hours, operators can promote value offerings and drive beverage and combo incidences. For FSR operators, offering specialty beverages and mixers during the late night hours could also help drive profitability.
As consumer preferences change, evolving offerings is critical to capturing sales. Meeting customer needs leads to enhanced guest satisfaction, higher beverage sales, and greater profit. It’s also the quickest path to a stronger competitive advantage.
For more information on consumer sentiment and other topics, sign up for our Refreshing Insights by Coca-Cola.
More Webinar Recaps:
Sustainability Is Key to Growing Your Foodservice Business
2016 Foodservice Trends: Evolving Menus and Time-Saving Technology
2016 Foodservice Trends: Smart Messaging and On-Demand Dining
¹ Shifts in Consumer Dayparts QSR & FSR – Coca-Cola Commitment Microsite
² All Day Breakfast Customer Selling Presentation
³ The Halverson Group OOH Beverage Landscape Study (Feb / Aug 2015)
⁴ QSR & FSR Shifts in Consumer Dayparts – Coca-Cola Commitment Microsite
⁵ Mintel Foodservice Trends Industry Insights Customer Presentation, February 2016
⁶ Coca-Cola Mixer & Beverage Alcohol Trends 2.23.16 – Coke Channel
⁷ FSOP Bar Zone Activation Guidelines